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Is Congress about to play chicken with the economy again?

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The summer of 2011 was an unpleasant time in Washington.

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Congress, as it has routinely done many times prior, needed to hoist the debt limit, as the law places a cap on how much the government can borrow to meet its obligations. Raising the debt ceiling is not a complicated legislation. Changing a single number to a higher number requires a one-sentence invoice. But the Republican majority in the House of Representatives, which had swept the previous year in a Tea Party wave, decided to enforce terms for raising the debt limit this time around — and President Obama reacted to them.

Had no agreement been reached, it could have caused the Treasury to default on its commitments and sent the global economy into chaos. But in the end, the two parties reached an agreement to cut spending over ten years. (Most of these reductions never materialized.) Everyone lost years in their lives to the stress of negotiations and brinkmanship, and everyone involved in politics came out worse. Absorb.

So who’s ready to do it again?

In fact, the debt limit has been reached. Since July 31, the Treasury has been using its own set of “extraordinary measures” to pay the bills, which it can do until sometime this fall. And he’s close.

Republicans didn’t concern much about the debt limit when they ran the government under President Trump and were burning money. They have been routinely raised or suspended as part of broader deals around government funding bills. Since the final suspension in 2019, the government has accumulated trillions of debt as a result of its coronavirus relief programmes. With the notable exception of the $1.9 trillion US bailout passed earlier this year, all others have been negotiated and passed on a bipartisan basis. They all agreed to this.

But now that they’re out of power, Republicans are telling Democrats they won’t agree to it anymore. They refuse to ever aid Democrats hoist the debt limit, especially as Democrats hoist a unused spending bill of $3.5 trillion.

“Let me just make one thing clear,” Senate Minority Leader Mitch McConnell said this week. “if [Democrats] You don’t need or want our input, they won’t get our aid. They won’t get our aid in increasing the debt limit that these reckless plans will require.”

Could it be more clear?

“I couldn’t be more clear,” McConnell emphasized. “They have the power. They control the White House, they control the House, they control the Senate. They can hoist the debt limit, and if it gets raised, they will.”

McConnell is right that Democrats have the aptitude to hoist the debt limit themselves. Debt limit increases are allowed under the Reconciliation, a grip-up-free process by which Democrats plan to pass their $3.5 trillion spending bill. McConnell and other Republicans, even those who sometimes assist the governance process in pleasing faith, are telling Democrats that they should only address the debt limit increase in that package.

theyRe Those who want to spend $3.5 trillion,” Utah Sen. Mitt Romney told reporters this week. They are the ones who are adding significantly to the debt. Raise the debt limit, if that’s what they’ll do, but they can do it themselves. we He should do that threatens our economy and is simply irresponsible.”

You may be wondering: Why is Mitch McConnell giving all this advice to Democrats? Just put it on your reconciliation bill, and get rid of it? It is not in McConnell’s habit of sharing helpful advice with the Democratic Party. But McConnell wants Democrats to have a billion-dollar increase in the debt limit, so Republicans can use it in offensive ads during the 2022 campaign.

There is an entirely divide debate to be had about whether voters are still concerned about debt. The members seem to think they do. Thus, Democrats, according to a Politico report this week, have tended not to hoist the debt limit themselves as they prepare their reconciliation bill. Instead, they prefer appending it to the next government funding bill, due at the end of September. Democrats feel they’re holding hands with Republicans in raising the debt limit under Trump, so it’s only sincere for Republicans to preserve raising it under Biden, rather than plunging the country into a fiscal cliff.

“The rules that existed under Donald Trump, that we would not tamper with the packed faith and credit of the United States of America, were the proper and prudent thing,” Virginia Snower. Mark Warner told reporters this week. “To create a artificial crisis … at this moment with a lot going on in the world, this thing that’s happening in this country, getting out of COVID and dealing with the alternative, would be an example of irresponsibility.”

Oregon Moon. Ron Wyden, the chairman of the Senate Finance Committee, has been vocal about Democrats not treating Republican demands as they did in the summer of 2011 Hell.

“Mitch McConnell is not going to be competent to do to President Biden what the Republicans have actually done to President Obama,” Wyden told reporters.

Democrats think Republicans will donate in, because they will be blamed for the twin crises of debt default. And Shut down the government by putting pressure on average government business. From now on, Republicans believe they have the power, because the Democrats are the party in control of the government and bear ultimate responsibility.

So who is right? not clear. Maybe it’s all a bunch of puffing and puffing on both sides, and some final-minute confront-saving arrangement will be made. But the bet is that Mitch McConnell, who doesn’t usually make big decisions quickly, has chosen to cheat on one of the most significant business items — that would be too hazardous for Democrats when they have another option available to them.


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